Coast-to-coast shutdowns of businesses and stay-at-home orders from the effort to contain the pandemic caused by the CCP (Chinese Communist Party) virus, commonly known as novel coronavirus, took their toll on U.S. consumer prices in March, sending them down by the most in five years.
The hit to overall consumer demand with more than 16 million people thrown out of work so far is likely to persist, suggesting prices will remain weak for some time to come.
But the drop in prices was especially pronounced in a handful of categories. And in a handful of cases, the quarantine efforts are driving prices higher.
Here is a look at some of the notable changes and what is behind them:
Airlines are operating at a fraction of their pre-crisis capacity and national hotel chains have largely shut their doors due to the absence of travelers.
As a result, airline fares plunged 12.6 percent between February and March, and hotel lodging costs tumbled 7.7 percent. For both, it was the largest drop since the Bureau of Labor Statics began tracking them.
The energy sector has been hit with a one-two punch in the crisis. The drop in travel and daily commuting arising from the virus containment efforts has meant demand for gasoline has plummeted, and a global oil price and market share war has flooded the world petroleum market with excess supply.
U.S. gasoline prices slid 10.5 percent, the most in four years, while fuel oil prices fell 13.7 percent, which was the largest slide since 2008.
For many U.S. consumers, the crisis hit home when professional sports leagues like the National Basketball Association, Major League Baseball, and National Hockey League suspended their seasons, and state and local stay-at-home orders meant youth and other amateur leagues were placed on hiatus, just as spring sports were about to start up.
That, along with the closure of most sporting-goods retailers, contributed to a near-record drop in prices for sports gear. They fell 2 percent month-over-month in March, matching the previous record decline in November 1982.
Cars and Trucks
Auto dealer showrooms were widely affected by the business closures, and the spike in unemployment has put a new vehicle purchase beyond the reach of millions of American consumers.
As a result, new passenger vehicle prices are dropping fast. In March, new car prices dropped by the most in nearly three years and light truck prices skidded by the most since August 2009.
Food Goes the Other Way
Food prices bucked the downtrend in March and moved higher by 0.3 percent last month, but combined Read More – Source
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